Phone Makers Scramble to Stand Out

The smart-phone wars are heating up. Handset makers are releasing a wave of new devices backed by a flood of advertisements, as some fight for survival in the fast-growing but increasingly crowded market.

Companies such as Motorola Inc. (MOT), Palm Inc. (PALM) and HTC Corp. are hoping new phones will help them reclaim market share from the reigning iPhone and BlackBerry. To do that, they will need a mix of impressive devices, shrewd pricing and aggressive marketing, analysts say.

Motorola has bet its future on a lineup of new phones that run Google Inc. (GOOG) software. On Wednesday, it is expected to unveil a highly anticipated device dubbed the Droid on the Verizon Wireless network. Verizon (VZ) has been touting the phone in TV ads attacking the iPhone.

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